# Fed day: Central bank maintains target rate at 4.25-4.50%

> The Fed kept the target rate at 4.25%-4.50% in a unanimous vote, the first hold of the year after three cuts in 2024. The statement described the labour market as stable and solid, which pushed the dollar index and Treasury yields modestly higher and pressured US equities and spot gold.

- Date: 2025-01-29 · published 2025-01-29T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/26415-fed-day-central-bank-maintains-target-rate-at-4-25-4-50
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

A firmer dollar and higher yields raise the cost of holding commodities for non-US buyers and can pressure futures. The reaction was moderate and mainly reflects rate expectations.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-06-07 | [Australia's central bank raises rates by 50 basis points](https://feedsoft.ai/events/41206-australia-s-central-bank-raises-rates-by-50-basis-points.md) | +2.4% | +4.0% |
| DXY | 2019-02-25 | [Dollar crown intact as central banks emulate Fed tightening pause](https://feedsoft.ai/events/60766-dollar-crown-intact-as-central-banks-emulate-fed-tightening-pause.md) | +0.2% | +0.4% |
| DXY | 2017-06-14 | [Dollar surges as hawkish Fed raises rates maintains rate outlook talks balance sheet reduction](https://feedsoft.ai/events/10196-dollar-surges-as-hawkish-fed-raises-rates-maintains-rate-outlook-talks-balance.md) | +0.6% | -0.9% |
| DXY | 2018-07-26 | [European Central Bank says rates will remain low for months \| AP News](https://feedsoft.ai/events/64242-european-central-bank-says-rates-will-remain-low-for-months-ap-news.md) | -0.0% | +0.7% |
| DXY | 2023-09-21 | [Stocks fall, yields rise as central banks rattle markets](https://feedsoft.ai/events/34308-stocks-fall-yields-rise-as-central-banks-rattle-markets.md) | +1.7% | +2.3% |
| EURUSD | 2018-07-26 | [European Central Bank says rates will remain low for months \| AP News](https://feedsoft.ai/events/64242-european-central-bank-says-rates-will-remain-low-for-months-ap-news.md) | -0.1% | -0.7% |
| EURUSD | 2023-09-14 | [European Central Bank hikes rates to record level](https://feedsoft.ai/events/34315-european-central-bank-hikes-rates-to-record-level.md) | -0.2% | -1.7% |
| EURUSD | 2025-04-24 | [ECB's Rehn says central bank may need to lower interest rates, Bloomberg News reports](https://feedsoft.ai/events/25339-ecb-s-rehn-says-central-bank-may-need-to-lower-interest-rates-bloomberg-news.md) | -0.0% | -0.1% |

## Sources

- euronews.com: https://www.euronews.com/business/2025/01/29/federal-reserve-holds-rates-steady-policy-divergence-with-ecb-widens
- fxstreet.com: https://www.fxstreet.com/analysis/fed-day-central-bank-maintains-target-rate-at-425-450-202501292207

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.